Hays approves ordinance allowing private debt collectors, permits 30% fee pass-through

Jamie Bright, city clerk, presented an ordinance authorizing the city to contract with private debt-collection agencies to pursue unpaid municipal debts. Bright said the current state setoff process can take roughly five months and requires three contact attempts; private agencies can "scrub" records to identify deceased accounts or other issues and use different collection methods. "The ordinance also allows us to pass on the fee, the collection fee, which is 30% to the customer who owes the debt," Bright said.

Commissioners discussed limits of the state's setoff method and noted the city would still follow required notice periods before pursuing collection. The commission moved to adopt ordinance No. 4104 authorizing debt-collection services and related reasonable costs; the motion passed 5–0. The item authorizes staff to execute agreements under the ordinance; no specific vendor was named in the meeting record.